Request for Public Comments on Reporting Requirements

Request for Public Comments on Reporting Requirements

Federal Register Notice
October 8, 2004
Volume 69, Number 195

AGENCY: Bureau of Transportation Statistics (BTS), DOT.

ACTION: Request for public comments.

SUMMARY: As part of our data quality review, we have contacted Federal
Express (FedEx Express) concerning the carrier's compliance with the
Department's mail reporting requirements. FedEx Express states that due
to the structure and operation of its transportation agreement with the
United States Postal Service, it is no longer in a position to comply
with the mail reporting requirements. BTS is seeking public comments on
the merits of the FedEx Express position and views on whether the
Department's mail reporting requirements should be retained, amended,
supplemented, replaced, or removed.

DATES: Comments must be received by December 7, 2004.

ADDRESSES: You may submit comments (identified by DMS Docket Number
BTS-2004-19241) through the following methods:

Instructions: All submissions must include the agency name and
docket number. Note that all comments received will be posted without
change to http://dms.dot.gov, including any personal information
provided. You should know that anyone is able to search the electronic
form of all comments received into any of our dockets by the name of
the individual submitting the comment (or signing the comment, if
submitted on behalf of an association, business, labor union, etc.).
You may review DOT's complete Privacy Act Statement in the Federal
Register published on April 11, 2000 (Volume 65, Number 70; Pages
19477-78) or you may visit http://dms.dot.gov.

Docket: For access to the docket to read background documents or
comments, go to http://dms.dot.gov at any time or to Room PL-401 on the
plaza level of the Nassif Building, 400 Seventh Street, SW.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.

SUPPLEMENTARY INFORMATION: Pursuant to 14 CFR part 241, certain air
carriers are required to file quarterly BTS Schedule P-1.2 Statement of
Operations. This schedule has a separate line item for mail revenues.
The schedule requires that reporting air carriers use account code 3905
for their mail revenues. According to BTS, FedEx Express has been
reporting large amounts of mail as freight using account code 3906. In
addition, pursuant to 14 CFR 214.19-5, certain air carriers are
required to report the tons of mail carried on each nonstop segment
flown using account code 239 and tons of mail enplaned using account
code 219. According to BTS, rather than report all its mail traffic
using these account codes, FedEx Express reported a large volume of
mail as freight using account codes 237 and 217.

Following an April 1, 2004 meeting with BTS representatives, FedEx
Express submitted an April 23 letter explaining its position. In its
letter, FedEx Express asserted that because of its unique relationship
with the United States Postal Service (USPS) it could not report its
mail traffic in the format required by the regulation. According to
FedEx Express, its transportation agreement with USPS is based on
"linehaul space" and is not based on weight. Under this agreement,
USPS purchases cubic feet of space in an aircraft. According to FedEx
Express, USPS can use the space for the U.S. mail or shipping USPS
supplies. In addition, the agreement allows FedEx to place its own
items in those containers which have additional space. Thus, according
to FedEx Express, it does not segregate the USPS product and weigh it
separately. Therefore, according to FedEx Express, it does not have the
data required by the part 241 regulation.

FedEx Express is also claiming that the reporting codes are not
applicable to its operations because the codes only apply to
"scheduled service" and the services provided to USPS are "not part
of services performed pursuant to published flight schedules."
FedEx Express also stated that to collect the required data would
be "extremely burdensome". According to FedEx Express, "[i]f the
Department were to insist that FedEx Express generate the information,
FedEx Express would have to unload containers, analyze the contents,
sort the mail from freight, separate priority from non-priority mail,
and weigh each group separately."

FedEx Express also claimed that the disclosure of this required
data would cause "serious competitive harm" to FedEx Express. FedEx
Express stated that disclosure of the required data elements "would
enable competitors to undercut [its] pricing or rates in future
negotiations with USPS." Finally, FedEx Express asserted that the data
serve no official DOT purpose.

Request for Public Comments

We are treating FedEx Express´ April 23rd letter as a waiver
request (see 14 CFR part 241, Section 1-2 and 14 CFR 385.19(c)). Thus,
we are inviting public comments on the FedEx Express request and views
on whether the Department's mail reporting requirements should be
retained, amended, supplemented, replaced, or removed. Based on the
public comments and a review of the waiver request, BTS will consider a
future rulemaking to amend, supplement, replace, or remove the relevant
regulations.

We are posing a series of questions in the hope that the public
comments will address several issues in particular:

(1) Do you use BTS' mail data elements required under part 241 and,
if so, how do you use the information?

(2) Should BTS consider these mail data elements as confidential
business information which, if disclosed to the public, would cause significant competitive harm to the supplier of the
information?

(3) Should BTS change the manner in which it collects these mail
data elements?

(4) Should BTS continue to collect the mail data elements under
part 241?

(5) Would it be in the public interest for BTS to grant FedEx
Express´ waiver request?

(6) If your company is subject to the current part 241 reporting
requirements, is it an extreme burden for your company to comply with
those requirements? If so, please explain, in detail.